Financial Stability Report

2011:2

Banks are resilient

…but there is considerable uncertainty

Financial market unrest

2

6

10

14

18

22

26

30

34

2

6

10

14

18

22

26

30

34

Aug-08 Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11

Greece Ireland Portugal Italy Spain

Interest on ten-year government bonds Source: Reuters EcoWin

Household and company borrowing is slowing down

Source: The Riksbank

-10

-5

0

5

10

15

20

-10

-5

0

5

10

15

20

99 00 01 02 03 04 05 06 07 08 09 10 11 12

Lending to companies Lending to households

Limited loan losses

Sources: Bank reports and the RiksbankThe major Swedish banks, totalled over four quarters, SEK billions, fixed prices, September 2011

The banks are well-capitalised compared to other countries

0 2 4 6 8 10 12 14 16 18

UBSSwedbank

HandelsbankenSEB

Credit SuisseStandard Ch.Danske Bank

RBSBarclaysNordea

HSBCLloyds TSB

IntesaDeutsche Bank

B. Popular EspanaBNP

Societe Gen.Santander

CommerzbankBBVA

Raiffeisen IntErste BankUniCreditoDnB NOR

Core Tier 1 capital ratios in accordance with Basel II Sources: Bank reports and the Riksbank

The banks can manage significantly weaker development

Sources: Bank reports and the RiksbankCET 1 capital ratios according to Basel III initially and in stress test

The banks’ liquidity risks

Sources: Liquidatum and the RiksbankSurvival period, number of days, assuming that the banks experience stressed deposit outflows and fail to refinance half of the market funding that falls due during a 3-month period.

0

10

20

30

40

50

60

70

80

90

100

Handelsbanken Nordea SEB Swedbank

December 2009 December 2010 September 2011

The Riksbank’s recommendations

The major Swedish banks should maintain or continue to increase their current CET 1 capital ratios

The major Swedish banks should continue to reduce their funding and liquidity risks

The major Swedish banks should continue to improve their public liquidity reporting

Higher capital adequacy requirements than the Basel III minimum

At least 10 per cent from 1 January 2013

At least 12 per cent from 1 January 2015

According to Basel III, 7 per cent gradually during 2013 -2019

Capital adequacy requirements specified excluding countercyclical buffer

Short-term liquidity measure should be introduced earlier

Start dates according to the Basel Committee’s proposals and the Riksbank’s recommendations

Source: The Riksbank

LCR

(Liquidity Coverage Ratio) LCR in EUR and USD

Basel Committee Jan 2015 Not binding

Riksbank Jan 2013 Jan 2013

Liquidity reporting needs improvement

The table is based only on information in the banks’ interim reports. Sources: Bank reports and the Riksbank

Information available per

quarterLiquidity buffer

Distribution of maturities, assets

and liabilities

Comparable key figures and

liquidity measures

Nordea

SHB

Swedbank

SEB

Meets minimum level

Reported, but does not meet minimum level

Absent or only marginally reported

Banks are resilient

EXTRA SLIDES

0 100 200 300 400 500 600 700

EstoniaSlovakiaRomaniaLithuaniaBulgariaPoland

HungaryLatvia

Czech RepublicFinland

SloveniaLuxembourg

ItalyBelgium

GreeceAveragePortugal

IrelandAustria

GermanyFrance

DenmarkSpain

SwedenNetherlands

United KingdomSwitzerland

De svenskastorbankernas utländskaverksamhetThe major Swedish banks´ foreign operations

The banks’ balance sheets in relation to GDP

The data refers to December 2010 Sources: The ECB, the Swiss National Bank and the Riksbank

Capital adequacy requirements for the major Swedish banks

Riksbankensrekommendation

januari 2013

Riksbankensrekommendation

januari 2015Kapitaltäcknings-kraven i Basel III

Countercyclicalbuffer 0 - 2,5%

Conservationbuffer 2.5%

Conservationbuffer 2.5%

Conservationbuffer 2.5%

Minimum requirement

for major banks 7.5%

Minimum requirement

for major banks 9.5%

Minimum requirement

4.5%

12,5%

10%

12%

14,5%

9,5%

7%

The Riksbank’s recommendation

January 2013

The Riksbank’s recommendation

January 2015

Capital adequacy requirements

in Basel III

Countercyclicalbuffer 0 - 2,5%

Countercyclicalbuffer 0 - 2,5%

Basel Basel minimumminimum

4.5%4.5%

Ring-fencebuffer

3%

CCB2.5%

Basel Basel minimumminimum

4.5%4.5%

SIB SIB surchargesurcharge

5%5%

CCB2.5%

9.5%

12.0%

United Kingdom

Sweden

Basel Basel minimumminimum

4.5%4.5%

TBTF buffer3%

CCB2.5%

Switzerland

Basel Basel minimumminimum

4.5%4.5%

Buffer3%

CCB2.5%

Austria

Basel Basel minimumminimum

4.5%4.5%

CCB2.5%

Basel III minimum

Other capital3.5%

Other capital3.5 %

Other capital3.5%

Bail-in bonds3.5%

Other capital3.5%

Low-triggerCoCos6%

4.5%

10.0%

4.5%

7.0%

4.5%

10.0%

High-triggerCoCos3%

The data refers to December 2010. Not incl. countercyclical cap. buffers. CCB (Capital Conservation Buffer)

Sources: Basel Committee on Banking Supervision, Swiss FMSA, Sveriges Riksbank, Oesterreichische Nationalbank, Independent

Commission on Banking

Capital adequacy requirements in different countries